Colchester voters go to the polls this week to consider a bond vote that, if all goes as planned, shouldn't cost the taxpayers anything. The $500,000 bond would pay to replace a failing wastewater system at the Windemere Estates Mobile Home Park, located on Johnson Avenue between St. Michael's College and Camp Johnson. The loan would be repaid by the property owner, The Housing Foundation, Inc. (HFI).
According to the town website, HFI is a nonprofit affordable housing organization. However the bond funds are only available to municipalities.
HFI would like to utilize State of Vermont revolving loan funds for this project, estimated at $500,000. According to State Statute, a municipality is the only entity which may apply for these funds. Private commercial financing or financing by owner was considered but is cost prohibitive; the State funds have a 0% interest fee with a 2% administrative fee. Therefore, the Colchester Selectboard agreed to warn a bond vote for this project with the understanding that if successful, the funds would pass through the Town to HFI. A Memorandum of Understanding between Colchester and HFI has been executed and states that HFI will complete the engineering, oversee the construction project, compile all the necessary documents for submittal to the State and pay for any administrative costs incurred by the Town. Furthermore, if this bond vote is successful, it will not add to Colchester's property tax or wastewater user costs as HFI will be responsible for repayment.
The State revolving loan funds actually come from the federal Environmental Protection Agency. If the bond votes passes the federal funds would flow from the EPA through the State of Vermont to the Town of Colchester and on to HFI.
The June 4 bond vote will be held by Australian ballot at the Town Meeting House and Colchester High School.
